Judge Urges SEC Decision on Transforming Celsius Network into Bitcoin Mining Firm

New York Judge Calls for Expedited SEC Decision

America's securities regulator, the U.S. Securities and Exchange Commission (SEC), has been urged to quickly decide on a proposal to transform Celsius Network, a bankrupt cryptocurrency lender, into a bitcoin mining firm. Judge Martin Glenn, who oversees the bankruptcy proceedings of Celsius, called on the SEC to expedite the decision-making process during a court hearing. He emphasized the need for a prompt decision as Celsius and its creditors have progressed rapidly through Chapter 11.

Repayment Proposal to Partially Repay Frozen Accounts

The proposed plan aims to partially repay customers whose accounts have been frozen since before Celsius filed for bankruptcy in June 2022. The repayment will be made using a combination of cryptocurrency and stock in the new publicly traded mining entity. The management team of the mining entity will be led by Arrington Capital.

Judge's Ruling and SEC Approval

Judge Glenn stated that he would issue a ruling on the matter as soon as possible. However, even if the ruling favors the proposed transformation, it would still require approval from the SEC. In the event that the plan to exit Chapter 11 fails, Celsius may have to liquidate.

Support and Challenges to the Repayment Proposal

The repayment proposal has received widespread support from creditors. However, some of Celsius' customers are challenging the plan, as they prefer liquidation, which would result in receiving more cryptocurrency instead of shares in a new company that has yet to establish itself in the market. Additionally, there have been complaints about the fees paid to bankruptcy advisers who work to secure creditor support for the plan.

SEC Lawsuit Against Celsius

In July of this year, the SEC sued Celsius, accusing the failed crypto lender and its former CEO, Alexander "Alex" Mashinsky, of making fraudulent promises for the platform's "Earn Interest Program" and misleading investors about the company's financial state. The SEC also highlighted that investors were unable to withdraw billions of U.S. dollars in crypto assets when the business started to collapse.

What are your thoughts on the SEC's potential approval of Celsius' proposed transformation and repayment plan? Share your opinions in the comments section below.

Frequently Asked Questions

How much money can a gold IRA earn?

Yes, but not as often as you think. It all depends upon how much risk you are willing and able to take. You could have $1 million if you're willing to invest $10,000 each year for 20 years. But if you put all your eggs in one basket, you'll lose everything.

Diversifying investments is crucial. Inflation can make gold perform well. It is important to invest in assets that increase with inflation. Stocks perform this well because they rise whenever companies increase their profits. This is also true for bonds. They pay interest every year. They're very useful during periods of economic growth.

But what happens when there isn't any inflation? When there is no inflation, stocks and bonds will lose even more value. Investors should refrain from putting all their savings into one type of investment such as a mutual fund or bond.

Instead, they should combine different types funds. They could also invest in bonds and stocks. Or they could invest in both cash and bonds.

By doing so, they are exposed to both the positive and negative sides of the coin. Both deflation and inflation. They will still see a return in time.

How does gold and silver IRA work?

You can make investments in precious metals (such as gold or silver) without having to pay tax. People who want to diversify portfolios will find them attractive investments.

If you are over 59 1/2, income tax is not due on the interest earned from these accounts. You also do not have to pay capital gains tax on any appreciation in the account's value. The maximum amount that you can invest in this type of account is $10,000. Minimum amount allowed is $10,000 You can't invest if you're younger than 59 1/2. Maximum annual contribution: $5,500

Your beneficiaries might not receive the full amount of your account if your death occurs before you retire. After you have paid all your expenses, your estate should include sufficient assets to cover the balance of your account.

While some banks offer gold and/or silver IRA options to their customers, others require them to open a regular brokerage bank account that allows you to purchase certificates or shares.

Which is stronger? 14k Gold or Sterling Silver?

Although gold and silver can be strong metals, sterling silver is far less expensive as it contains 92% silver instead of 24%.

Sterling silver is also known by the name “fine silver” because it is made up of a mixture from silver and metals like zinc, copper, and zinc.

It is generally believed that gold is very strong. It is very difficult to separate it from its metal counterpart. If you dropped an object on top to a gold piece, it would shatter into thousands rather than breaking into two halves.

However, silver isn't as strong and durable as gold. A sheet of silver would likely bend and fold if you dropped an item on it.

Silver is often used to make jewelry and coins. Its value fluctuates based on demand and supply.

What proportion of your portfolio should you have in precious metals

Protect yourself against inflation by investing in physical gold. This is because you not only get the current price but also the future value when you invest precious metals. You can expect your investment to increase in value with the rise of metal prices.

Tax benefits will accrue if your investments are kept for at most five years. And if you sell them after this period, you will have to pay capital gains taxes. If you want to learn more about how to buy gold coins, visit our website.


  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
  • Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
  • You can only purchase gold bars of at least 99.5% purity. (forbes.com)
  • Silver must be 99.9% pure • (forbes.com)

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How To

How to turn your IRA into a IRA with gold content

So you want to move your retirement savings from a traditional IRA into a gold IRA? This article will assist you in that endeavor. Here's how to make the switch.

Rolling over is the process of transferring money from one type of IRA to another. Rolling over an account offers tax advantages. Others prefer to invest in tangible assets, such as precious metals.

There are two types IRAs: Traditional IRAs or Roth IRAs. The difference between the two accounts is simple. Roth IRAs have no tax deductions, but Traditional IRAs can deduct taxes. This means that if you have $5,000 invested in a Traditional IRA, you will only be able take out $4850 after five years. You could keep every penny if the same amount was invested in a Roth IRA.

If you are looking to convert your traditional IRA into a gold IRA, here's what to know.

First, you will need to decide whether your current balance should be transferred to a new account. Transferring money will result in income tax being paid at the normal rate for earnings greater than $10,000. But if you choose to roll over your IRA, you won't be taxed on those earnings until you reach age 59 1/2.

After you have made your decision, you will need to open a new account. Most likely, you will need to present proof of identity such as a Social Security Card, passport, or birth certificate. Then, you'll fill out paperwork showing that you own the IRA. Once you've completed the forms, you'll submit them to your bank. You'll be verified and given instructions on where you can send your wire transfers and checks.

Now comes the fun part. After you have received approval from the IRS, you will deposit cash to your new account. Once you have received approval, you will receive a letter that allows you to withdraw funds.

That's it! You can now relax and watch your money grow. You can also close your IRA and transfer the balance to a new one if you change your mind.


By: Lubomir Tassev
Title: Judge Urges SEC Decision on Transforming Celsius Network into Bitcoin Mining Firm
Sourced From: news.bitcoin.com/judge-urges-for-sec-decision-on-planned-celsius-restart-as-crypto-miner/
Published Date: Wed, 01 Nov 2023 03:30:59 +0000

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